Personal Injury

Posts Tagged ‘Florida’

While a homeowner in Florida is not required by Florida law to purchase home insurance, a person who has just taken out a mortgage will likely find that the mortgage holder will have certain requirements in regards to home insurance. The requirements are pretty much the same no matter what mortgage lender a person works with, although there are some variations from lender to lender.

A person who is taking out a mortgage to buy a home should also consider the costs of home insurance for the house itself; property insurance is not necessary in this case. The mortgage holder will simply want to make sure that the person who is buying the home has coverage should the home for any reason sustain damage or loss of value. A new homeowner may need to hire a contractor to evaluate what the value of the home is; the contractor’s evaluation will then need to be verified by the bank that holds the mortgage.

Mortgage lenders will also want to know about the insurance policy’s deductible. The deductible, simply put, is the amount of money that a homeowner will need to pay on his or her own should damage occur to the house and/or the property. While it is expensive to purchase a policy that has a low deductible, in many cases banks will have a policy on what sort of minimum deductible is acceptable. On the other hand, a person who is buying a home should look over his or her finances carefully and make sure that he or she can pay for damage done to the house that will not be covered on the insurance policy that is being taken out.

Most homeowners purchase insurance to cover their most expensive and valuable asset. Certain areas of the country present special challenges because of the terrain and weather that increase risk of ownership. Florida residents face special challenges when attempting to purchase sufficient insurance coverage at affordable rates. Knowing the special coverage types required and what insurance packages are offered by Florida Home Insurance providers is the best way to protect your home.

Every Florida home insurance policy must cover sinkhole damage. A sinkhole will open when limestone dissolves and creates an underground cavern that becomes progressively weaker until the ceiling collapses and opens to the surface. Certain areas of Florida are more vulnerable and homeowners must be aware of the rate differences when purchasing homeowners insurance.

Hurricane coverage is another special coverage for Florida homeowners. Most homeowners will carry deductibles up to 3% of the homes value to offset exorbitant insurance premiums. Saving for the cost of the deductible is essential to being prepared when a storm strikes.

Flood coverage is never included in the basic home insurance policy. Florida residents are encouraged to purchase flood insurance that will cover the cost of water pushed ashore as a hurricane makes landfall. Because most of Florida is near sea level, flooding is very common even with heavy rainstorms that can last for days at a time.

The Citizens Property Insurance Corporation was formed to underwrite home insurance policies for homeowners who reside within the wind-borne debris region, which covers the entire Florida beachfront area. Whenever a homeowner has become uninsurable by standard definition, the CPIC will assist the resident in constructing an affordable insurance policy to cover their property.